It’s hard enough dealing with uncontrollable debt, when you have creditors coming after you to collect, it makes it worse. If you are struggling to meet your basic needs and feel like there is no way out of your financial situation, there is help.
Personal bankruptcy may be an option to help you gain some control over your finances.
But if you are dealing with aggressive creditors and debt collectors, it may be hard for you to even get a plan together. Credit harassment occurs when creditors or debt collectors pressure individuals to repay debts using unethical, aggressive, or illegal methods.
Creditors do have the right to pursue debts, however there are rules and laws that they must abide by. When they use threats, verbal abuse or unreasonable forms of contact, they are crossing the line. So, if you owe money, its important to know the signs of credit harassment so that you can get the protection you need.
Signs of Credit Harassment
Credit harassment can be recognized through the following signals:
• Lots of Calls: Repeatedly receiving calls on a daily basis even after the creditors have been told to stop.
• Inappropriate Telephone Calls: Directly talking at times before 8 a.m. or after 9 p.m. in your local time zone; and thus, in a violation of the Fair Debt Collection Practices Act (FDCPA), this is a clear example of misconduct by the agency.
• Threatening Tactics: Threatening violence, usage of profane language, or making unsupported threats of arrest.
• Using False Identity: Debt collectors disguising themselves as attorneys, law enforcement personnel, or government agents.
• Disclosure to the Public: Making your debt public or making unauthorized contacts like family members or employers, about your debt.
• Demands for Unverified Debts: Pursuing repayment without proper documentation or verification of the debt.
This kind of “collection” is illegal under the FDCPA in the United States.
Does Filing for Bankruptcy Help?
Bankruptcy filing may be the most effective action for total cessation of credit harassment in most cases. Once you file for bankruptcy, an automatic stay is issued and will last throughout the bankruptcy process. This means that the creditors and debt collectors are legally bound not to contact you, collect payments, or take any collection actions.
How bankruptcy works to stop creditors
• Immediate Relief: The automatic stay applies as soon as you file your bankruptcy case. If the creditors do not follow the stay, they can face legal repercussions.
• Eliminating Debt: Chapter 7 bankruptcy makes it possible to discharge (eliminate) a number of unsecured debts, such as credit card bills and medical bills which are the main sources of harassment.
• Reorganizing Debt: Chapter 13 bankruptcy could be the way to organize debts in a way that a client can afford with repayment ability, thus the creditor is less desperate to collect money forcibly.
Some Limitations to be Aware of:
• Bankruptcy is not going to resolve any family law issues, such as child support,alimony and most student loans. It also does not resolve your tax issues but can help you negotiate a solution.
• Additionally, be aware that bankruptcy has long term credit implications that negatively impact your credit.
Free Bankruptcy Consultation Near You
Whether you file for bankruptcy or not, it’s your choice. But make sure you are making an informed decision. Contact the bankruptcy attorneys at Hines Law for help and guidance. We are a full-service bankruptcy firm with several locations throughout the greater Boston area. Our debt solutions are affordable and have provided relief as well as opportunity to people strapped with overwhelming debt for more than 20 years.